The Top 10 Challenges Facing the Deployment of Six Sigma Initiatives  Successfully Implementing Six Sigma in Chemicals and...
<ul><li>Presentation Elements: </li></ul><ul><ul><ul><li>The Shortest Overview of Six Sigma </li></ul></ul></ul><ul><ul><u...
For the 1000 th  Time, What is Six Sigma Again??? Eliminate Defects Reduce Variation Save Money Management Philosophy 3.4 ...
How do we start with Six Sigma? We start by shifting our thinking to Process! Vision  Strategy Goal Setting Metrics Produc...
“ We are going to shift the paradigm from fixing products to fixing and developing processes. So that they produce nothing...
An Early Attempt at using Six Sigma without Process thinking…
<ul><li>Very Successful Case Studies* </li></ul><ul><li>Committed leadership </li></ul><ul><li>Use of top talent </li></ul...
Reasons for not being successful with Six Sigma have little to do with DMAIC… …  It Has Everything to do with Leadership &...
Are There Only 10 Challenges Facing the Deployment of Six Sigma Initiatives? <ul><li>Obviously Not… </li></ul><ul><li>The ...
Top 10 reasons why Six Sigma Initiatives Fail <ul><li>Selected Six Sigma projects are not connected to the corporation’s g...
Reason # 1  Selected Six Sigma project are not connected to the corporation’s goals
Six Sigma Projects and Corporation’s Goals  Identify, Prioritize & Charter New Improvement Projects Collect Data & Evaluat...
Reason # 2    The corporation is deploying Six Sigma for the wrong reasons
Wrong Reasons to Deploy Six Sigma <ul><li>Six sigma methodology is being used to save a company in strategic distress </li...
Reason # 3    Six Sigma project goals are not aligned with Champion’s Goals
Role of Champion in Six Sigma Projects <ul><li>Executive Champion / Champion </li></ul><ul><ul><li>Recognizes and defines ...
So why is the champion so important? <ul><li>Champion’s success in the organization should partially depend on the project...
Reason # 4    A bottom-up rather than top-down project selection methodology
What is Top-Down Project Selection Methodology? Best Scenario for Six Sigma   Not Ideal for Six Sigma
Six Sigma Project Selection Id Core sub-processes Id Metric and how to measure the output Id next sub level process YES Us...
Reason # 5    No clear financial benefits
No Clear Financial Benefits… <ul><li>As stated earlier, to avoid failure, the goal of a six sigma project should be connec...
Reason # 6   The corporation does not have clear processes to support customers
Why Focus on Customer <ul><li>Creates a process focus </li></ul><ul><li>Accrues many benefits  (Defect Reduction) from ali...
Finance & Accounting Manufacturing Human Resources Logistics Quality Product Development Leadership Strategy Conventional ...
Finance & Accounting Manufacturing Human Resources Logistics Quality Product Development Leadership Strategy Customer-Driv...
Functions Customers Order Generation Acquisition Customer Service Drug Discovery  Order Fulfillment Common Core Business P...
Reason # 7 Poor or wrong Metrics
How do we identify metrics to evaluate or judge our processes?
Reason # 8 Project has ineffective charter
How do we Create an Effective Project Charter
Reason # 9   Solution is obvious
What Should you do when the Solution is Obvious? Q: The Solution is Obvious A: Just Do It                                 ...
Reason # 10 Focusing on output measures
X or Y? Historically the Y, … with Six Sigma the Xs Process Input X Output Y X X X Process Input X Output Y X X X
Why X? Y = f(x 1 , x 2 , x 3 , x 4 ,…x n ) Focusing on Output measures is Like looking in a rear view mirror,  You can onl...
Some Final Thoughts… “ To improve is to change. To be perfect is to change often.” -Winston Churchill
Questions???
Hope this Presentation Helped in Strengthen your Faith in Six Sigma
Sources <ul><li>The Six Sigma Revolution, George Eckes, c. 2001, John Wiley & Sons, New York. </li></ul><ul><li>Leading Si...
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The Top 10 Challenges Facing the Deployment of Six Sigma Initiatives - Successfully Implementing Six Sigma in Chemicals and Pharmaceuticals

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The Top 10 Challenges Facing the Deployment of Six Sigma Initiatives - Successfully Implementing Six Sigma in Chemicals and Pharmaceuticals

  1. 1. The Top 10 Challenges Facing the Deployment of Six Sigma Initiatives Successfully Implementing Six Sigma in Chemicals and Pharmaceuticals Dr. Fadel Hamed ASQ Certified SSBB, CQE Project Manager, Amgen Adjunct Professor, Manufacturing Systems and Engineering Management, California State University Northridge
  2. 2. <ul><li>Presentation Elements: </li></ul><ul><ul><ul><li>The Shortest Overview of Six Sigma </li></ul></ul></ul><ul><ul><ul><li>The top 10 Challenges </li></ul></ul></ul>
  3. 3. For the 1000 th Time, What is Six Sigma Again??? Eliminate Defects Reduce Variation Save Money Management Philosophy 3.4 Defects per million opportunity Project Management DMAIC Data Driven Problem Solving Business Process Focus
  4. 4. How do we start with Six Sigma? We start by shifting our thinking to Process! Vision Strategy Goal Setting Metrics Product Focus Process Focus Customer Requirements
  5. 5. “ We are going to shift the paradigm from fixing products to fixing and developing processes. So that they produce nothing but perfection or close to it!” Jack Welch
  6. 6. An Early Attempt at using Six Sigma without Process thinking…
  7. 7. <ul><li>Very Successful Case Studies* </li></ul><ul><li>Committed leadership </li></ul><ul><li>Use of top talent </li></ul><ul><li>Supporting infrastructure </li></ul><ul><ul><li>Formal project selection process </li></ul></ul><ul><ul><li>Formal project review process </li></ul></ul><ul><ul><li>Dedicated resources </li></ul></ul><ul><ul><li>Financial system integration </li></ul></ul><ul><li>Less Successful Case Studies* </li></ul><ul><li>Supportive leadership </li></ul><ul><li>Use of whoever was available </li></ul><ul><li>No Supporting infrastructure </li></ul><ul><ul><li>No formal project selection process </li></ul></ul><ul><ul><li>No formal project review process </li></ul></ul><ul><ul><li>Part time resources </li></ul></ul><ul><ul><li>Not integrated with financial system </li></ul></ul>Experts’ Opinion on Successful vs. Unsuccessful Six Sigma Deployment * Taken from Leading Six Sigma: Snee and Hoerl
  8. 8. Reasons for not being successful with Six Sigma have little to do with DMAIC… … It Has Everything to do with Leadership & Business Process Management Fadel’s Opinion on Successful vs. Unsuccessful Six Sigma Deployment
  9. 9. Are There Only 10 Challenges Facing the Deployment of Six Sigma Initiatives? <ul><li>Obviously Not… </li></ul><ul><li>The following challenges are based on Fadel’s personal experience with Six Sigma. </li></ul>
  10. 10. Top 10 reasons why Six Sigma Initiatives Fail <ul><li>Selected Six Sigma projects are not connected to the corporation’s goals </li></ul><ul><li>The corporation is deploying Six Sigma for the wrong reasons </li></ul><ul><li>Six Sigma project goals are not aligned with Champion’s Goals </li></ul><ul><li>A bottom-up rather than top-down project selection methodology </li></ul><ul><li>No clear financial benefits </li></ul><ul><li>The corporation does not have clear processes to support customers </li></ul><ul><li>Poor or wrong Metrics </li></ul><ul><li>Projects has ineffective charter </li></ul><ul><li>Solution is obvious </li></ul><ul><li>Focusing on output measures </li></ul>Strategic Tactical
  11. 11. Reason # 1 Selected Six Sigma project are not connected to the corporation’s goals
  12. 12. Six Sigma Projects and Corporation’s Goals Identify, Prioritize & Charter New Improvement Projects Collect Data & Evaluate Performance. Identify Process Constraints ID Effectiveness and Efficiency Metrics for the Process Outputs. Create Dashboard ID Key Core, Sub & Enabling Process & Create High Level Maps Corporation’s High Level Strategic Goals Identify and map the business processes that customers care about, define metrics, goals, identify opportunity and improve!
  13. 13. Reason # 2 The corporation is deploying Six Sigma for the wrong reasons
  14. 14. Wrong Reasons to Deploy Six Sigma <ul><li>Six sigma methodology is being used to save a company in strategic distress </li></ul><ul><li>The company is in financial trouble </li></ul><ul><li>Six sigma is being used because company’s competitors are deploying six sigma </li></ul><ul><li>Executive leadership wishes to impress shareholders with six sigma language </li></ul><ul><li>Why not us… </li></ul>
  15. 15. Reason # 3 Six Sigma project goals are not aligned with Champion’s Goals
  16. 16. Role of Champion in Six Sigma Projects <ul><li>Executive Champion / Champion </li></ul><ul><ul><li>Recognizes and defines the project </li></ul></ul><ul><ul><li>Charter and sponsors the project </li></ul></ul><ul><ul><li>Selects the Black Belt </li></ul></ul><ul><ul><li>Arrange resources for the project </li></ul></ul><ul><ul><li>Removes roadblocks to project success </li></ul></ul><ul><ul><li>Monitors project’s budget </li></ul></ul><ul><ul><li>Ultimately responsible for project’s financial gain </li></ul></ul><ul><ul><li>Actively participates in gate reviews & approval processes </li></ul></ul>
  17. 17. So why is the champion so important? <ul><li>Champion’s success in the organization should partially depend on the project’s success </li></ul><ul><li>Probability of success drops dramatically when black belt has to continuously pull champion into project </li></ul><ul><li>Without an involved sponsor, any project regardless of whether it is Six Sigma or not, would most likely fail to deliver meaningful results </li></ul><ul><li>When the project goals are not in line with champion’s goals, this leads to bottom-up rather than top-down project selection methodology (Reason # 4) </li></ul>
  18. 18. Reason # 4 A bottom-up rather than top-down project selection methodology
  19. 19. What is Top-Down Project Selection Methodology? Best Scenario for Six Sigma Not Ideal for Six Sigma
  20. 20. Six Sigma Project Selection Id Core sub-processes Id Metric and how to measure the output Id next sub level process YES Use SIPOC to MAP the “Constraint” Sub-Process Identify causal Metrics and enabling processes Outputs Measurable? NO ID Key Core, Sub & Enabling Process & Create High Level Maps Six Sigma Projects are Identified and Selected
  21. 21. Reason # 5 No clear financial benefits
  22. 22. No Clear Financial Benefits… <ul><li>As stated earlier, to avoid failure, the goal of a six sigma project should be connected to the corporation’s goals </li></ul><ul><li>As stated by many experts, the goal of (for-profit) corporation’s is to make money </li></ul><ul><li>No money, no strategic benefits, no Six Sigma </li></ul>Show me the Money! Mr. CEO
  23. 23. Reason # 6 The corporation does not have clear processes to support customers
  24. 24. Why Focus on Customer <ul><li>Creates a process focus </li></ul><ul><li>Accrues many benefits (Defect Reduction) from aligning a process with customers </li></ul>S I P O C Suppliers Inputs Outputs Customers Process Traditional Flow Six Sigma Approach Customer is the King!
  25. 25. Finance & Accounting Manufacturing Human Resources Logistics Quality Product Development Leadership Strategy Conventional Organizational Structure <ul><li>Hierarchical Control, Vertical Role Clarification, Functional , Large </li></ul>Functions <ul><li>Most organizations today are organized and measured by department and member contributions to “functions” </li></ul><ul><li>Executive leaders may operate as a team but are focused individually, on the management of functions </li></ul><ul><li>Strategic priorities are translated to functional goals and objectives </li></ul><ul><li>Improvements are prioritized and addressed within department processes and competencies </li></ul><ul><li>Improvement projects are then sold to upper management </li></ul>
  26. 26. Finance & Accounting Manufacturing Human Resources Logistics Quality Product Development Leadership Strategy Customer-Driven Organizations <ul><li>Speed, Functional Integration and Line-of-Sight to Customer </li></ul>Functions <ul><li>Products and services for customers are not produced by functions, but by processes which tend to cross functional lines </li></ul><ul><li>Some of these processes tend to be the way the customers identify with the company </li></ul><ul><li>Functions are (or should be) the residence and building place for competencies </li></ul><ul><li>Process capabilities are the key leverage points in order to achieve strategy (the desired state of organization) </li></ul><ul><li>Measurement focuses process efficacy </li></ul>Processes Customers
  27. 27. Functions Customers Order Generation Acquisition Customer Service Drug Discovery Order Fulfillment Common Core Business Processes
  28. 28. Reason # 7 Poor or wrong Metrics
  29. 29. How do we identify metrics to evaluate or judge our processes?
  30. 30. Reason # 8 Project has ineffective charter
  31. 31. How do we Create an Effective Project Charter
  32. 32. Reason # 9 Solution is obvious
  33. 33. What Should you do when the Solution is Obvious? Q: The Solution is Obvious A: Just Do It                                       
  34. 34. Reason # 10 Focusing on output measures
  35. 35. X or Y? Historically the Y, … with Six Sigma the Xs Process Input X Output Y X X X Process Input X Output Y X X X
  36. 36. Why X? Y = f(x 1 , x 2 , x 3 , x 4 ,…x n ) Focusing on Output measures is Like looking in a rear view mirror, You can only see were you have been.
  37. 37. Some Final Thoughts… “ To improve is to change. To be perfect is to change often.” -Winston Churchill
  38. 38. Questions???
  39. 39. Hope this Presentation Helped in Strengthen your Faith in Six Sigma
  40. 40. Sources <ul><li>The Six Sigma Revolution, George Eckes, c. 2001, John Wiley & Sons, New York. </li></ul><ul><li>Leading Six Sigma, Ronald D. Snee & Roger W. Hoerl, c. 2003, Pearson Education, Inc. </li></ul><ul><li>ASQ </li></ul><ul><li>LIFE and a lot of mistakes… </li></ul>

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